How to Purchase Home Insurance

Home insurance protects you against damages due to theft, weather, accidents and liability issues. Many home insurance policies also protect you against losses incurred due to identity theft. If you have a mortgage, you are required to have insurance on your house, although not its contents.

Things You'll Need

• Digital Camera

Instructions

1. First, find out what it would cost to rebuild your home. Your house should be insured for what it would cost to replace the structure, not the amount of your mortgage, which is what your lender may require. You'll also want to purchase a policy that covers replacement costs for your personal property as well.

2. Take an inventory of your home's contents. Gather receipts and take pictures of valuables. Examine the inventory to see if you have a number of guns, artworks, electronics, jewelry or fur. Your contents are often covered at a percentage of the value of your home's structure, so you may need to increase the amount covered or purchase additional policies to cover these valuables.

3. Make a list of safety features in your home. You can get home insurance discounts for alarms and indoor sprinkler systems.

4. Obtain quotes from several companies yourself or hire an insurance broker. Insurance brokers determine your needs and obtain quotes on the open market from various companies.

5. Compare your options. Make sure you not only consider cost but also coverage and deductibles.

Tips & Warnings

• Give your insurance agent a copy of your home contents inventory. Purchase home insurance from the same company where you have auto insurance to enjoy multiple policy discounts.

• Do not keep cash in your home. Most policies only cover up to $500 in cash losses.

Resources

• State Farm
• All State
• Farmers
• Farm Bureau